Popular form of business: Though the concept of Limited Liability Partnership has been recently introduced in India but it is very known concept in other countries of the world especially in service sector, realty sector, JV/SPV.

Easy to Form: It is very easy to form LLP, as the process is very simple as compared to Companies and does not involve much formality. Its cost of formation is also lesser in comparison to companies.

Body Corporate: Just like Company, LLP is also body corporate, which means it has its own existence as compared to partnership. LLP and its Partners are distinct entity in the eyes of law. LLP will know by its own name and not the name of its partners.

Perpetual Succession: An incorporated LLP has perpetual succession. Not withstanding any changes in the partners of the LLP, the LLP will be same entity with the same privileges, rights and obligations. The LLP shall continue to exist till its wound up in accordance with the provisions of the relevant law.

Liability: The liability of partner is limited upto the amount of contribution mentioned in LLP agreement. A Partner is personally liable for his own wrongful act i.e. act which is not authorized by LLP or for fraud on his part.

Partners are not agent of other Partners: In LLP partners unlike partnership are not agents of the partners and therefore they are not liable for the individual act of other partners in LLP, which protects the interest of individual partners.

Separate Property: The LLP as legal entity is capable of owning its funds and other properties. The LLP is the real person in which all the property is vested and by which it is controlled, managed and disposed off. The property of LLP is not the property of its partners. Therefore partners cannot make any claim on the property in case of any dispute among themselves.

Related party transactions: There is no restriction for entering into contracts with related parties in LLP.

Investment: LLP can invest in shares of other Company in its name.

Flexible to Manage: LLP Act 2008 gives LLP the freedom to manage its own affairs. Partner can decide the way they want to run and manage the LLP, in form of LLP Agreement. The LLP Act does not regulate the LLP to large extent rather than allows partners the liberty to manage it as per their will.

Compliances: There are minimum compliance required to complied under LLP Act in comparison to companies.

Taxation: LLPs will be treated at par with Partnership firm for the purpose of Income Tax (30% flat + 3% Education Cess). No surcharge on Income Tax. Moreover, LLP are also not subject to Dividend Distribution Tax as compared to company, so there will not be any tax while you distribute profit to your partners.

Raising Money: Financing a small business like sole proprietorship or partnership can be difficult at times. The LLP being a regulated entity like company can attract finance from PE Investors, financial institutions etc.

No Mandatory Audit Requirement: Under LLP, only in case of business, where the annual turnover / contribution exceeds Rs 40 Lacs / Rs 25 Lacs are required to get their account audited annually by a chartered accountant. This provides great relief to small businessmen.

Capacity to sue: As a juristic legal person, the LLP can sue in its name and be sued by others. The partners are not liable to be sued for dues against the LLP.